I recently found this method to be the most effective for me at the moment-hiding money from myself. Well, technically not hiding, but spliting my finances into various different accounts and prioritizing each account for specific purposes. The smartest way to benefit from this method is utilizing accounts that require (1.) no minimum balance, and (2.) no monthly fee. I'll make a separate post for that list.
Sounds like a great idea.
Hello,
Good idea but don’t go overboard with too many accounts! It can be hard to follow
Look up “paying yourself first” and dollar cost averaging. Great ways to ensure you tuck away money.
I received my stimulus deposit yesterday. I am going to save every penny of this $1400 for emergency fund. I need to open a savings account separately for this purpose that requires no minimum balance and no fees. I am checking out T-Mobile online banking because it also pays 4% interest. That beats the savings account I have currently that only pays 1%. This account is local and the costs of brick and mortar really lowers interest payment. I do need to change but I like having a bank I can drive to to make transactions if I choose to. Of course, it has online banking as well but doesn't affect interest % rates paid. I will reduce the amount in this account and transfer to my T-Mobile account if a choose to open. Earning 4% interest versus 1% interest is a very attractive offer.
Note that the 4% is on balances up to $3,000 and it falls to 1.00% APY after that.
I received my stimulus deposit yesterday. I am going to save every penny of this $1400 for emergency fund. I need to open a savings account separately for this purpose that requires no minimum balance and no fees. I am checking out T-Mobile online banking because it also pays 4% interest. That beats the savings account I have currently that only pays 1%. This account is local and the costs of brick and mortar really lowers interest payment. I do need to change but I like having a bank I can drive to to make transactions if I choose to. Of course, it has online banking as well but doesn't affect interest % rates paid. I will reduce the amount in this account and transfer to my T-Mobile account if a choose to open. Earning 4% interest versus 1% interest is a very attractive offer.
It's not attractive to me anymore now that they require 10 debit card purchases each month to earn the 4%.
Thank you
